Description

Oil and Gas Report - Ghana Q3 2014 Description

BMI View: Delays in construction of the Atuabo gas processing plant have dampened our short-term oilproduction outlook, as associated gas production at Jubilee and a prohibition on gas flaring combine tolimit output. However, our longer-term bullish view on the Ghanaian oil and gas sector remains in play. Webelieve that the country's attractive business environment, supportive central government and substantialunderexplored acreage will continue to draw investment over our forecast period. However, we have noteda recent deterioration in the country's macroeconomic position, and underline this as potential downsidethreat over the longer-term.

The main trends and developments in Ghana's oil and gas sector are:

The Atuabo plant, designed to process associated gas production from the Jubilee oil field, has facedrepeated and severe delays. Allowing for commissioning, we do not expect the plant to come onlinebefore Q414 at the earliest.